Dechra Pharmaceuticals Plc, the Chesire-based veterinary drugs giant, said on Monday it has secured the rights to market Tri-Solfen in Australia and New Zealand and has acquired a further 1.5% of the issued share capital of Medical Ethics Pty Ltd (Medical Ethics) for £18.1 million to increase its holding to 49.5% .

“This now provides Dechra the rights to sell Tri-Solfen, an important pain management product, in all international markets,” said Dechra.

“Under the agreement Dechra will acquire the marketing authorisations and enter a long term licensing agreement with Animal Ethics Pty Ltd (Animal Ethics). 

“The agreement provides Dechra with exclusive rights to sell and market Animal Ethic’s product, Tri-Solfen, which is already registered for sheep and cattle and is sold in Australia and New Zealand with current annual sales of AUD$ 9.1 million (£5.1 million).  

“Under the terms of the agreement Dechra has agreed to make an upfront  payment of AUD$ 5 million (£2.8 million) on signing, with the balance of the payment on the first commercial sale by Dechra into the Australian market which is expected in July 2021.

“A royalty will also be paid on all net sales.  

“In addition to cattle and sheep, the product is being developed for other species, with the application for pigs being a primary focus, especially in the EU.

“Following the acquisition from the current shareholders of the additional 1.5% of the issued share capital of Medical Ethics Pty Ltd (Medical Ethics), the parent company of Animal Ethics, Dechra will hold 49.5% of the issued share capital of Medical Ethics.”

Dechra CEO Ian Page said: “We are delighted to secure this agreement which now completes Dechra’s worldwide rights to sell and market this multi-species pain management product.  

“Tri-Solfen significantly strengthens our FAP portfolio in Australia and New Zealand, will further our geographical expansion strategy and will enhance Dechra’s reputation of providing clinically necessary, high quality, ethical veterinary pharmaceuticals.”.